2016 (9) TMI 1010 - AT - Customs

Valuation - imported Mercedes Benz Car - enhancement of the value of the car due to accessories - purchase price - list price - car cover - optional item - Held that - the manufacturer of car issued an invoice and a certificate indicating that the price at which the car was sold to the appellant was inclusive of cost of all accessories. The vehicle was purchased by the appellant in Dubai by paying an amount of Dirhams 83,100/- all inclusive. Since the certificate and the invoice issued by the appellant does not indicate any different amount charged for accessories, an error occured on adding value of accessories for determining the value for discharge of the Customs duty - appeal allowed - decided in favor of appellant.

Summary

Issues involved: Valuation of imported car with accessories for Customs duty determination.

Analysis:
1. Valuation of Imported Car: The appeal challenged the Order-in-Appeal regarding the valuation of a Mercedes Benz Car imported by the appellant. The lower authorities had increased the car's value due to accessories. The Tribunal had earlier remanded the matter for re-determination based on purchase price over list price. The adjudicating authority, in the denovo proceedings, re-determined the value but added an additional amount for car cover and optional items, leading to a confirmed demand. The first appellate authority upheld this decision, emphasizing that the valuation of accessories was not contested during the appeal before the Tribunal, which was limited to issues mentioned in the remand order.

2. Errors in Impugned Order: The Tribunal found the impugned order to be erroneous as it deviated from the direction to re-determine the value based on the purchase price. The appellant had purchased the vehicle in Dubai for a specific amount inclusive of all costs. The manufacturer had also issued an invoice certifying that the sale price included the cost of all accessories. Notably, the Revenue Authorities did not dispute these facts. As the invoice and certificate did not indicate any separate amount for accessories, the lower authorities erred in adding the accessory value for Customs duty calculation, going against the Tribunal's earlier directive. Consequently, the Tribunal held the impugned order to be unsustainable and set it aside, allowing the appeal with consequential relief.

3. Operative Order: The impugned order was set aside, and the appeal was allowed with consequential relief, as pronounced in open court.